Netflix reverses subscriber slump, shares surge 14%
- Netflix Inc reversed customer losses that had weighed on its stock this year and forecasted more growth in the future, assuring Wall Street as it prepares to launch a new streaming service with advertising.
- Netflix shares rose 14% in after-hours trading, boosted in part by the streaming giant’s forecast of 4.5 million new customers in the fourth quarter.
- Before the earnings report, the company’s stock had dropped nearly 60% this year, despite being an investor favourite during its years of rapid growth.
- Netflix added 2.4 million new subscribers worldwide between July and September, more than doubling what Wall Street expected. “